Asheboro tax rate goes up 8 cents

Asheboro tax rate goes up 8 cents

ASHEBORO — Asheboro City Council members unanimously approved a city budget Thursday for the 2014-2015 fiscal year that hikes the tax rate by 8 cents.

“Unfortunately, it’s a tough budget year and our costs keep going up and our taxable value went down a little, but we have some catching up to do,” said Mayor David Smith.

The current revaluation chops $25 million from the assessed value of property in the city.

The city’s current ad valorem tax rate is 55 cents per $100 valuation.

The new budget, effective July 1, sets the property tax rate at 63 cents.

City officials explained that a tax rate hike of just over two and a quarter cents per $100 valuation was needed to remain revenue neutral — simply to bring in the same amount of revenue as in the current budget.

An additional hike of five and three-quarter cents was needed to cover city needs for the next fiscal year.

The proposal includes a monthly fee of $5 for garbage collection and $1 for curbside recycling pickup and an increase in water and sewer charges.

The minimum water and sewer bill is now $30.61. The new minimum will be $31.06. The average water bill for a household of three or four people will go up about $6 monthly.

The budget proposal includes a general fund allocation of $25.38 million and a water and sewer fund allocation of $16.18 million.

Among the general fund highlights:

* $425,000 for a new fire truck (and about $40,000 in equipment for the truck).

* $34,000 for a new phone system at public works (which keeps crashing).

Water and sewer fund highlights include:

* $1.25 million in filter upgrades.

* $1 million for a digester cover.

* $400,000 for nitrification control system upgrades.

* $271,000 for vehicles for various departments.

* $101,000 for a backhoe.

* $50,000 for a sewer line camera.

After the vote, several council members commented on the tax hike.

“It’s not easy raising taxes,” said Charles Swiers, “but you have to do what you have to do.”

Linda Carter noted that everywhere one turns, from the grocery store to the gas station, costs are up.

“Ours, unfortunately, has to be through taxation,” she said.

Walker Moffitt said he respected the job done by city staffers in putting together a budget when faced with a shrinking tax base. And he said many constituents seemed to understand the situation the city faced this year.

They might not be so understanding in the future, he added.

Moffitt said the city is going to have to change its strategy on the economic development front.

“We’ve got to enhance our economy or we will be facing this again,” he said. “Soon.”

Mayor Smith noted that the New Century Business Park project south of the Randolph County Jail is included in next year’s budget.

Redevelopment of the former Goodyear property north of town offers another opportunity.

“If we can’t sell ourselves,” Smith said, “nobody is going to do it for us.”